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Further help on overdrafts, loans and credit cards confirmed for those hit by coronavirus
Finance

Further help on overdrafts, loans and credit cards confirmed for those hit by coronavirus 

FCA will continue to monitor overdraft pricing

The FCA has confirmed that it will not extend temporary guidance it put in place in relation to overdraft costs. In April, it asked all firms to temporarily ensure all overdraft customers were no worse off on price when compared to the prices they were charged before the recent overdraft rule changes came into force. 

So from Tuesday 14 July, banks that had previously raised their overdraft interest rates – many to 39.9% EAR/APR – will be able to begin charging those rates again.

However, the FCA has confirmed that it will continue to monitor overdraft pricing. In a statement on its site it said: “We will be keeping a close watch on how prices develop, particularly during and after the coronavirus pandemic.

“We require firms to publish information on their overdraft pricing alongside the information they already publish about current account services. This information is due to be published in August for the first time and will cover the quarter from 1 April to 30 June 2020.

“We will also carry out a post-implementation evaluation of our overall package of overdraft remedies around 12 months after the full package of remedies is implemented. So our evaluation will start after April 2021.”



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